ewe # Prolem Solving. Dtrectiona: Analyze arved solve the probleYs presented2 79oblenn Servieer Tax is an indireea tax pasct bsy a service recerver to thewermment on or before 5 day of the month follawing the quarter for whachVce tax in peytale with the exemption for the quarter ending march to beod on or before ehe 31 ar March The rate o sterest for delayed paymentf service tax 1s 13 Szeppose vou failed to pay your service tax of 15,000 00 far the month oof Janeto pv only on the 30th of July?What iss your innterest Iiabalty if you re memberMichael have rgualar savinggs accournt wath an available balance of P 5,000 00.month of the prevailing bank's interest rate 1s O.5%% per annum and thewithholdeag fax is 20 7Mow mauch netterestis earned by this deposit account forKovs is an employee of MIKOY company and placed his money amounting toP100, O00.00 in a ume deposit account for 90 days with an interest rate ofIS%. Considering 20% withholding tax. How much will be the net interest3.ancome?4.The nstallement price of a Koys furniture is 5. 000.00 for 12-month loan ofa down payment of P 2. 000.00 was mad e How much is the installmentpaymentPTECT TT5. How nuch should Koy deposit in his savings account so that he will be ableto withdraw P 100,000.00 after3 years if the bank's interest rate is 3%%?6. Ryan appled for a loan, if instead of paying P 10, 600.00 at the end of 1 year,He was required by the lender to pay P 10, 750.00. What is the rate ofinterest applied by Ryan on the loan?AM atrix7. Michael deposited and mvested P 200,000 for 2 years at 6% interestcompounded quarterly. How much is the simple interest?For items 8 to 10 refer to the following problem.Mr. Koys applied for a farm input loan amounting to P 24, 000.00. With a fixedrate of 5.5% per annum.8.How much will be the interest for 1 year?9.How much will be his monthly amortization?10.Compute the principal and interest for the first month of his loan?

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7. Michael deposited and mvested P 200,000 for 2 years at 6 interest compounded quarterly. How much is the simple interest? For items 8 to 10 refer to the following problem. Mr. Koys applied for a farm input loan amounting to P 24, 000.00. With a fixed

7. Michael deposited and mvested P 200,000 for 2 years at 6 interest compounded quarterly. How much is the simple interest? For items 8 to 10 refer to the following problem. Mr. Koys applied for a farm input loan amounting to P 24, 000.00. With a fixed

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

ewe # Prolem Solving. Dtrectiona: Analyze arved solve the probleYs presented
2 79oblenn Servieer Tax is an indireea tax pasct bsy a service recerver to the
wermment on or before 5 day of the month follawing the quarter for whach
Vce tax in peytale with the exemption for the quarter ending march to be
od on or before ehe 31 ar March The rate o sterest for delayed payment
f service tax 1s 13 Szeppose vou failed to pay your service tax of 15,
000 00 far the month oof Jane
to pv only on the 30th of July?
What iss your innterest Iiabalty if you re member
Michael have rgualar savinggs accournt wath an available balance of P 5,
000 00.
month of the prevailing bank's interest rate 1s O.5%% per annum and the
withholdeag fax is 20 7
Mow mauch net
terest
is earned by this deposit account for
Kovs is an employee of MIKOY company and placed his money amounting to
P100, O00.00 in a ume deposit account for 90 days with an interest rate of
IS%. Considering 20% withholding tax. How much will be the net interest
3.
ancome?
4.
The nstallement price of a Koys furniture is 5. 000.00 for 12-month loan of
a down payment of P 2. 000.00 was mad e How much is the installment
paymentP
TECT TT
5. How nuch should Koy deposit in his savings account so that he will be able
to withdraw P 100,000.00 after3 years if the bank's interest rate is 3%%?
6. Ryan appled for a loan, if instead of paying P 10, 600.00 at the end of 1 year,
He was required by the lender to pay P 10, 750.00. What is the rate of
interest applied by Ryan on the loan?
AM atrix
7. Michael deposited and mvested P 200,000 for 2 years at 6% interest
compounded quarterly. How much is the simple interest?
For items 8 to 10 refer to the following problem.
Mr. Koys applied for a farm input loan amounting to P 24, 000.00. With a fixed
rate of 5.5% per annum.
8.
How much will be the interest for 1 year?
9.
How much will be his monthly amortization?
10.Compute the principal and interest for the first month of his loan?

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